Liu Guiping, Deputy Governor of the Central Bank: Green and low-carbon transformation in the next few decades is the core logic of investment decisions

Original title: Highly vigilant about “getting up in a rush, and breaking up in a rush”!Liu Guiping, Deputy Governor of the Central Bank: Green and low-carbon transformation in the next few decades is the core logic of investment and other decision-making

Summary

[Vice Governor of the Central Bank Liu Guiping: Green and low-carbon transformation in the next few decades is the core logic of investment and other decisions]On June 10th, Liu Guiping, deputy governor of the People’s Bank of China, stated at the 13th Lujiazui Forum that the next few decades , The green and low-carbon transformation will be embedded in the core of all economic activities and become the core logic of investment, production, consumption and circulation decisions. (Shanghai Securities News)

After “carbon peak, carbon neutral” was first written in the government work report, it attracted the attention of all walks of life.

On June 10th, the peoplebankVice President Liu Guiping at the 13thLujiazuiSaid on the forum,In the next few decades, the green and low-carbon transformation will be embedded in the core of all economic activities and become the core logic of investment, production, consumption and circulation decisions.

He reminded that the vigorous development of the green industry is very clear to everyone, but we must remain calm and rational, and be highly vigilant about “sweeping up and breaking up.”

“Carbon peaking and carbon neutrality are not simply at the expense of economic growth, the accumulation of national wealth and the improvement of people’s living standards, but the realization of carbon emission reduction constraints, a comprehensive, coordinated and sustainable high-quality development, which requires full rationality. The relationship between ecological civilization construction and economic and social development should be well balanced.” Liu Guiping said, “Carbon peaking and carbon neutrality are a broad and profound economic and social systemic change. We are required to face the difficulties and require science as soon as possible. Set carbon emission reduction targets, deploy practical and feasible solutions to meet the standards, and introduce green development measures that are standardized, clear and operable.”

　　The “three major functions” and the “five pillars” are the focus of the financial sector to strongly support carbon peaks and carbon neutrality

Liu Guiping pointed out that the “three major functions” and the “five pillars” are the focus of the financial sector to strongly support carbon peaks and carbon neutrality.

　　It is reported that the peoplebankWe have always attached great importance to the development of green finance. After years of exploration, we have established the “three major functions” and “five pillars” of green finance development ideas, namely: giving full play to the three functions of resource allocation, risk management and market pricing that finance supports green and low-carbon development. , Explored and formed the “five pillars” of the green financial system-green financial standard system, financial institution supervision and information disclosure requirements, incentive and restraint mechanism, green financial products and market system, and international cooperation in green finance.

This year, the peoplebankFocusing on the strategic goal of “carbon peak and carbon neutrality”, a series of policies have been introduced to guide capital to accelerate its tilt toward low-carbon fields. Including: the “Catalogue of Green Bond Supported Projects (2021 Edition)” jointly issued with the National Development and Reform Commission and the China Securities Regulatory Commission to unify green bond standards; the introduction of carbon-neutral debt financing instruments and carbon-neutral financial bonds in the inter-bank market; “The Green Finance Evaluation Plan for Banking Financial Institutions” carries out a comprehensive evaluation of the green loans and green bond businesses of financial institutions.

As of the end of the first quarter of this year, a total of 65.62 billion yuan of carbon neutral bonds had been issued in the inter-bank market; the national green loan balance in domestic and foreign currencies was 13 trillion yuan, a year-on-year increase of 24.6%, which was 12.3 percentage points higher than the growth rate of various loans in the same period.

Liu Guiping revealed that the People’s Bank of China is planning to step by step to establish a mandatory disclosure system, unify disclosure standards, and promote information sharing among financial institutions and enterprises; it will explore and carry out climate change risk stress tests, and use the power of finance to promote the realization of “30·60”. Good atmosphere for the target.

In addition, the People’s Bank of China is rushing to study the establishment of carbon emission reduction support tools that directly reach the field of carbon emission reduction. By providing low-cost funds to qualified financial institutions, it supports financial institutions to provide preferential treatment for projects with significant carbon emission reduction effects.interest rateFinancing.

　　Green and low-carbon transformation requires “two legs” to walk

Liu Guiping pointed out that to strengthen financial support for the construction of the national carbon market, a green and low-carbon transition requires “two legs”: one is green financial support, and the other is a carbon emission trading market.

　　He pointed out that the core of the carbon market is to use market-based pricing, restrain emissions, and encourage emission reductions, while at the same time giving full play to the financial maturity conversion and risk management functions to guide intertemporal investment and promote the research and development of low-carbon technologies.

“This requires a good job in two aspects.” Liu Guiping emphasized that one is to set a clear total carbon emission target as soon as possible. Under the total constraint, the market supply and demand determines the quota trading, forming a clear price signal, thereby guiding expectations, Stabilize expectations and promote low-carbon investment.

The second is to further give play to the supporting role of finance in the construction of the carbon market. The underlying logic of carbon trading is the transfer of emission rights, which includes many links such as allowance allocation, registration, trading, verification, and evaluation. The actual operating costs are relatively high, which limits market efficiency. The introduction of more financial institutions and financial products, including carbon derivatives, is conducive to giving play to the price discovery function of the carbon market and reducing transaction costs.

Liu Guiping said that green investment is a typical inter-temporal investment with a long cycle, high uncertainty and high risks, and it is urgent to use various risk management tools and methods. The financial market has many mature risk management tools and operating modes. Managing the carbon market in accordance with the financial market logic is conducive to effective cross-cycle allocation and hedging. The financial system will actively cooperate and actively adapt to the needs of carbon market construction, and effectively balance the relationship between incentives, intertemporal and risk management in green and low-carbon investment.

　　Be highly vigilant about “getting up in a rush, and breaking up in a rush”

Since the “carbon peak and carbon neutral” goal was put forward, the green finance business has been promoted to the “peak” of market attention.

Liu Guiping said that according to the calculations of mainstream institutions at home and abroad, the scale of capital investment required for carbon peaking and carbon neutralization is about 150 trillion to 300 trillion yuan, which is equivalent to an average annual investment of 3.75 trillion to 7.5 trillion yuan. There are huge investment opportunities behind the huge demand for funds, and various investment outlets continue to emerge, which are very attractive to domestic and foreign market participants.

“Everyone sees the vigorous development of the green industry very clearly, but we must remain calm and rational, and be highly vigilant about’sweeping up and breaking up’.” Liu Guiping reminded the international irrational prosperity of emerging industries. There are countless examples of economic and financial risks. Whether it was the ebb of railway investment in the mid-nineteenth century, the bursting of the radio, power, automobile and petrochemical bubbles in 1929, or the bursting of the “Internet bubble” in 2001, they all revealed the potential socioeconomic costs of irrational investment.

Liu Guiping emphasized that in the process of achieving the “30·60” goal, all parties should maintain calm judgment, rational decision-making, and be cautious, earnestly carry out early warning of production capacity and risk monitoring, and truly achieve up and down, left and right balance, and orderly progress. , To work together to ensure the steady and long-term development of green development.

(Source: Shanghai Securities News)

(Editor in charge: DF075)